CCTV.com - CNTV English - CCTV News


Homepage > News > Biz >

Volkswagen-Porsche merger to make both companies stronger: Volkswagen CEO

07-06-2012 03:18 BJT

BERLIN, July 5 (Xinhua) -- Germany's largest carmaker Volkswagen on Thursday said they believed their ongoing merger with Porsche's profitable car-manufacturing sector would have a positive impact on future earnings.

"We will concentrate all our strength on the operative business and the solid, profitable growth of the company," Volkswagen CEO Martin Winterkorn said, adding the move would benefit customers, employees and shareholders alike.

"Combining their operating business will make Volkswagen and Porsche even stronger -- both financially and strategically, going forward," Winterkorn stated.

Volkswagen announced in a statement late Wednesday that it is set to wind up its final takeover of Porsche AG by the end of the month, completing the capital restructuring of the cash-strapped luxury sports car manufacturer.

Porsche AG will become another full subordinate brand of the Volkswagen group from August 1, along with Audi, Volkswagen, Seat, Bugatti, Lamborghini, Bentley and truck makers MAN and Scania.

Volkswagen will spend an additional 4.46 billion euros (5.61 billion U.S. dollars) to finalize the purchase of the remaining 50.1 percent in Porsche AG's capital from Porsche SE. The takeover is expected to result in savings of some euro 700 million euros per year.

Volkswagen's shares were up 5.9 percent at 135.75 in Frankfurt trading after the deal was announced.

Porsche fell into great indebtedness after its failed takeover attempt of Volkswagen in 2009.

 

Editor:James |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program